The asset is being purchased for $51,025,000, bringing total acquisition cost including reserves to $56,571,289.
Valuation ladder
Acquisition price$51.02M
Offering price$31.71M+-37.9%
Cap rate spread & load
Syndicated cap rate5.15%
Upfront load on offering10.00%
Acquisition Price
$51,025,000
Offering Price
$31,709,210
Appraised Value
—
Upfront Load
$3,170,921
Load on Equity
—
Load on Offering Price
10%
Acquisition Cap Rate
—
Syndicated Cap Rate
5.15%
Premium / Discount
—
Appraisal / Offering %
—
Less Reserves %
—
Strengths
- Brand new construction limits initial capital maintenance.
- Syndicated cap rate calculated at 5.15%.
Concerns
- Total acquisition cost expands to $56,571,289 including reserves.
- Acquisition cap rate is not disclosed.